Affordable Fashion Surpasses Luxury in China

4/23/2013 3:41AM

Inexpensive fashions are now expanding at a faster rate in Asia than luxury brands, as consumers flock to brands such as Zara and H&M. Kim Mercado from CBRE, a commercial real estate services firm, talks about brands targeting China’s middle class.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... luxury affordable fashion is quickly surpassing its luxury peers in Asia ... welcome to Asia Today Ahmadi the Sanchanta with me to discuss this is can McConnell ... the director of Asia Pacific research at CBRE the real estate services firm ... can thank so much for joining us Anna and isn't a field ... um you ... about another report it's basically sat is ... Asia in a show were luxuries to dominate affordable ... brands are actually starting to surpass luncheon in terms of ... the pace of expansion ... what's going on with writing this trend ... it's ... really a couple of reasons the first is done to ... this report focuses on new market entry it's ... it's a new retailers coming into the market where is lecturing has been in Asia for really long time so they were granted the first friends to come into the market ... so there's not as many markets for them to expand into ... the second reason is is that ... they're a lot more Kinder midrange meets here and value brands out there so there's a lot of them coming into the market ... and they really coming in for a couple of reasons which is mine ... he urbanization ... and Asia China Southeast Asia ... and then this idea of kind of capitalizing on this emerging kind of middle-class which are seeing a lots especially in China ... and its trend to continue one for the next ... decade or so ... it's really fascinating shift because for so long luxury has been the main breadwinner so to speak here in Asia especially in China ... but something interesting that we spoke about yesterday you mention the fat Asian brands are becoming more dominant it's not just the European the US ... if the Korean and Japanese brands that are becoming increasingly popular what what what's happening there ... really is given by the Internet ... I think everybody can kind of Dell on the internets ... and kind of look at trends and beauty kind of ... deal Francis's idea conduct a pot ... it's really kind of exploded all over Asia ... to say we see a lot of Korean brand is expanding into Asia is a Japanese brands you see some Chinese and and friends from Hong Kong also so they're really just kind of moving outside of their home ... their domestic countries and other areas ... does this mean then that luxury is actually starting to shrink in the South or does it just me know that they are expanding into effect more creative ways than one thing I mentioned yesterday was ... their dentist or is that they Ardi have opened ... an Anzac resale this report focuses on you ... and B Taylor brand's as the market and he's luxury brands have been in there for so long ... may have multiple stores ... said they are doing a couple things one is they are focusing on customer experience ... they're investing ensue and ... the retail stores that are econ ... and sometimes in some cases they may actually even just ... pm me of into a better spot if it becomes available ... so there's still investing in their platform in Asia ... it is not ... this is not expanding ... at the same piece of the war in terms of the number of stores topic thank so much airtime as watching Asia Today politeness joins ... WSJ's dot com on my because Sanchanta